Snapchat's Evan Spiegel spends $5 million on New Years party: reports

Evan Spiegel is putting on a $US4 million ($5.1 million) New Year’s Eve party for his employees, which will see a section of downtown Los Angeles closed to the public, and is rumoured to feature a performance by Drake.

The Snapchat CEO, who is married to Australian model Miranda Kerr, has secured two street closures in downtown Los Angeles to pull off the bash, which will take place in the LA Live entertainment complex, TMZ reports.

Evan Spiegel and Miranda Kerr, seen here at a White House function. Photo: AP

According to documents obtained by TMZ, iconic venues rented out for the party, which has obtained permits to host up to 5,000 guests, include celebrity haunts Katsuya and Wolfgang Puck Bar & Grill, and the Microsoft Theatre, which plays host to the People's Choice Awards each year.

The celebrity news website is reporting Spiegel plans to fly Snapchat employees from "around the world" in for the party.

Spiegel has an estimated net worth of $US3.2 billion ($4.1 billion).

Snapchat told TMZ there would also be a "performance" on the night that was "personally" funded by Spiegel. While the tech company remained tight-lipped on the identity of the performer, rumours are that it is Canadian rapper, Drake.